Can 529 Be Used For Room And Board At Home

While you absolutely can use 529 college savings plans to pay for room and board expenses taking a few precautions will make it easier for you come tax time.

Can 529 be used for room and board at home.

Room and board costs make up a large portion of a student s total college bill second only to tuition you can use a 529 plan to pay for room and board but only if certain requirements are met. The room and board expenses must be incurred while the student is enrolled at a college or university that is eligible for title iv federal student aid. Tuition and fees are considered required expenses and are allowed but when it comes to room and board the costs can t exceed the greater of the following 2 amounts. It s likely to be less than off campus students living independently but should still be in excess of 1 000 per school year.

Paying for off campus housing with a 529 plan your student s room and board could be covered tax free for an entire 12 month lease even if he or she only takes classes for nine months of the year. Colleges typically have a room and board budgets for students who live on campus in college owned or operated housing for. Criteria for room and board as a qualified distribution. While funds from a 529 account can be used to pay for expenses required for college not all expenses qualify.

You can use a 529 plan distribution to pay for a student s room and board expenses if the student is enrolled at least half time. I read other places that if its a nominal charge i e. Room and board includes the cost of housing and the cost of a meal plan. The caveat here is that your off campus housing costs can t be higher than you d pay to live on campus if you want to use 529 funds.

Qualified room and board expenses may be no more than the greater of. We will land up with about 7 000 more in 529 than we can use. Using a 529 plan to pay room and board. While investors can use 529 funds to pay for a college s room and board fees housing arrangements off campus also count.

Off campus housing and rentals are qualified up to the cost of room and. No other children relatives to pass it to. You may need to check with your child s school to learn the room and board allowance for students living at home with parents. Room and board costs may be treated as qualified education expenses for 529 plan distribution purposes if the student is enrolled at least half time by the standards of the school.

200 a month for room and board around 1 000 a year you would not need to claim as income as it is just family members passing money around but i was curious if anyone has actually done this. Always try to pay room and board expenses directly to the university or landlord with a distribution check from the plan.